Bitcoin (BTC) Price Prediction – February 28, 2021
Since February 25, BTC/USD has been in a downward move. BTC price has fallen from the high of $58,000 to $44,000 low. Today, Bitcoin has been in a range-bound movement between $44,000 and $48,000.
Resistance Levels: $58,000, $59,000, $60,000
Support Levels: $40,000, $39,000, $38,000
Since February 26, the bulls have been defending the $44,000 support as the BTC price resumed a range-bound movement between $44,000 and $48,000. Presently, the upward movement of the coin has been impeded by the resistances at the $50,000 and the $52,000 high. On the upside, if the current support holds, Bitcoin price will rise to retest or break the $52,000 resistance. Eventually, the king coin will regain bullish momentum to revisit the overhead resistance at $58,000. In the meantime, the price is falling and approaching the low of $44,000. If the bears break the $44,000 support, the king coin will further decline to the $37,500 low. The market has fallen to level 47 of the Relative Strength Index period 14. It indicates that the price is in the downtrend zone ad capable of falling.
Two Things Deterring Institutional Crypto Buying, by Damien Vanderwilt
Damien Vanderwilt is the co-president of Galaxy Digital. He explains two things hindering many mainstream entities from buying into Bitcoin. He strongly indicated that security and taxes may be acting as deterrents for crypto investing. Recently, companies such as MicroStrategy and Tesla have invested sizable positions in Bitcoin. In a nutshell, MicroStrategy, MassMutual, Tesla, and Square have all allocated millions of dollars to Bitcoin.
Precisely, MicroStrategy has spent more than $1 billion on the asset and the company has put an additional billion into BTC. Similarly, Square also recently announced adding $170 worth of Bitcoin. According to Damien Vanderwilt : “When we think about the conversations we have with corporates and institutional clients and any part of those constituencies considering investing in the sector, the first-order problem is safety and are the assets that they’re buying going to be safe and available and secure. The second-order problem, particularly for the corporate, is tax treatment and the way that particularly under GAAP accounting in the U.S., Bitcoin is viewed as an intangible asset,” he added.
Meanwhile, the bears have been attempting to break the crucial support at $44,000. A breakdown below this support will mean that the Fibonacci tool analysis will hold. On February 23 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement implies that BTC price will fall to level 1.618 Fibonacci extension. That is the low of $36,828.80.
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